Air Handling Units Market Size, Share, Industry, Forecast and outlook (2024-2031)

Air handling units market is Segmented By Type (Modular, Packaged, Custom, DX Integrated, Low Profile (Ceiling), Roof-Mounted, Others), By Capacity (≤5,000 m3/h, 5,001 – 15,000 m3/h, 15,001 – 30,000 m3/h, 30,001 – 50,000 m3/h, ≥50,001 m3/h), By Effect (Single, Double), By Application (Commercial, Residential), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Air handling Units Market Report Overview

The air handling units market report analyzes the market size, current trends, competitive landscape, and future market outlook. The demand for air handling units is increasing due to the growth of construction activities and increasing awareness about energy-efficient HVAC systems.

The market is witnessing a surge in demand from Commercial and Residential in the Asia-Pacific region is rising. The competitive rivalry is intensifying with major players such as Johnson Controls, Daikin Industries Ltd., and others actively operating in the market.

Air Handling Units Market Scope

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An air-handling unit is a box-like piece of machinery that performs one or more of the following tasks: circulation, cooling, heating, humidification, cleaning, dehumidification, and mixing of air, which is done while keeping temperature, flow rate, humidity, and density under control. An air-handling unit's main job is to take air from outside, condition it using the criteria mentioned above, and then give it to the user.

The user could be a house, an office, a building, or any other workplace. A conventional air-handling unit features a metal enclosure where all the unit's components are housed. Depending on the demand, a cooling or heating coil used for cooling or heating dehumidifies or humidifies the air.

A centrifuge with backward inclined, forward curved, backward curved, and airfoil blades controls the pressure and flow rate required by the system. There are two types of air-handling units based on fan placement: blow-through units with the fan located before the coil and draw-through units with the fan placed after the coil. Filters remove pollutants and particles of varying sizes from the air we breathe.

Panel filters (used when a low level of filtration is required), HEPA filters (used when a high level of filtration is required) and electrostatic filters (used when a high level of filtration is required) are the three types of filters available (applied where the efficiency of filtration is high). Humidifiers regulate the moisture content in the air.

Air Handling Units Market Dynamics and Trends

Improving demand for air conditioning systems due to rising urbanization and population growth.

Improving demand for air conditioning systems due to rising urbanization and growth in population

Cities currently host roughly % of the world's population or 4.2 billion people. The pattern is likely to persist in the future. Furthermore, By 2050, the urban population is predicted to double, with roughly seven out of ten people on the planet living in cities. For example, the expanding population in Gulf countries is expected to impact building investment in GCC countries considerably.

By 2050, the region's population is expected to exceed 600 million, up from 350 million in 2015. The mentioned numbers are anticipated to boost infrastructure and building activity, notably in education, housing, and healthcare facilities, to help communities.

The growing population results from increased demand for retail, commercial, and residential structures. In metropolitan areas, mixed-use buildings combining business and retail space with residential apartments and condominiums are being constructed.

Vacant warehouses and buildings are being transformed into new commercial and residential areas. The growing construction transformation puts even more pressure on developers to determine what renters want and need in building design and facilities to maintain high occupancy rates. These factors increase the demand for energy-efficient air conditioning equipment, such as air handling units.

Rising fluctuation in raw material prices and lack of enough awareness about the benefits of HVAC systems

Metals and alloys, polypropylene, and fiber-reinforced polymers construct air handling systems. The OEMs' ability to source high-quality raw materials and manage the supply schedules imposed by suppliers is hampered by fluctuating raw material prices, which drives up the cost of air handling units. With rapid technological advancement, it is critical to educate end customers about the advantages of new goods.

In the case of HVAC systems, there is a lack of information about their economic and environmental benefits; they are typically considered expensive, making market penetration difficult in emerging and poor economies. There is also a lack of knowledge about energy-efficient HVAC systems.

Furthermore, there is a lack of knowledge about HVAC system standards among HVAC system contractors. Higher SEER criteria, such as 21 SEER units, have just been introduced, which home HVAC building firms are ignorant of, causing their business to suffer. As a result, it may stifle the market for air handling units.

COVID-19 Impact on Air Handling Units Market Growth

The non-residential building faced the most difficulties at the start of 2020. As the impact of the virus outbreak became clear, a large portion of China's workforce working in the AHU-related industry was ordered to remain under quarantine. As a result, various major manufacturing enterprises were unable to resume operations, new building projects were halted and AHU installers were unable to get access to construction sites.

During the March–April 2020 timeframe, delays in the supply of air conditioners and heat pumps mounted as restrictions and the quarantine expanded to additional countries. AHU manufacturers kept a strict eye on spending, wholesalers cut their supplies and installers took time off and disrupted supply lines.

Because of government-mandated steps to prevent the spread of COVID-19, Johnson Controls International plc's manufacturing and operations capacity in China was temporarily reduced in the second quarter of fiscal 2020. Johnson Controls International plc saw similar decreases in the third quarter of fiscal 2020 due to government-mandated initiatives in India and Mexico.

Furthermore, Component, transportation, and labor costs grew, but equipment prices remained unchanged, placing pressure on manufacturers' margins.

Air handling Units Market Segment Analysis

The global air handling unit market can be segmented on the type, effect, capacity, application, and region.

The rising demand for packaged air handling units from commercial applications is boosting the growth of the segment

The global air handling unit market is segmented by type into packaged, custom, dx integrated, modular, low profile (ceiling), rooftop-mounted, and others. In 2020, the packaged type category held the greatest proportion of the air handling unit market. The rise of the packaged air handling unit can be ascribed to the rising demand for the product from commercial applications such as hospitals, commercial buildings, data centers, universities, laboratories, and server rooms, which helped drive the global air handling unit market forward.

Furthermore, packaged air handling units offer various advantages, such as air conditioning and heating, in which packaged units can be easily installed as air conditioners or heat pumps. If customers opt for a heat pump, they will have both cooling and heating taken care of in one convenient unit. Furthermore, the packaged air handling unit offers excellent space-saving, eliminating the need for an indoor unit with its coil and air handler, saving a large amount of indoor space. In addition, easy to service and repair; when an HVAC unit is contained within a single cabinet, technicians have an easier time doing repairs and performing routine maintenance inspections. Because of the rooftop location, periodic maintenance and tune-ups will cause minimal disruption to regular operations.

Furthermore, Packaged units have the huge benefit of being available in modules, allowing for easy expansion of heating and cooling capacity without replacing the entire system. The customer can add more packed units to increase the cooling load as the business grows within the area.

Air Handling Units Market Geographical Share

Increasing demand for air handling systems from the constantly rising industrial sector in Asia-Pacific is boosting the market growth for the region

In 2020, the Asia-Pacific was the largest market for air handling units. One of the major factors responsible for Asia-Pacific's greatest share and CAGR is the increasing demand for air handling systems from the constantly rising industrial sector. Rising urbanization and commercialization in Asia-Pacific developing countries like Australia, India, Thailand, and Taiwan will most likely boost demand for air handling systems.

During the forecast period, India is expected to have the biggest demand for air handling units in the Asia-Pacific. Demand for comfortable living conditions increases as the standard of living and disposable income rise, fueling the demand for air conditioning equipment.

Furthermore, increased investments across various industries, including pharmaceuticals, building and construction, hospitals, data centers, and research and development laboratories, will fuel the region's air handling unit market expansion over the projection period.

In addition, because of the increasing steps done by governments to encourage the use of energy-efficient systems by offering subsidies and tax benefits, the air handling units market in North America is expected to rise significantly. Furthermore, present customers are upgrading to new energy-efficient systems, which is expected to fuel the region's air handling unit market expansion in the forecast period.

Air handling units Companies and Competitive Landscape

The global air handling unit market is highly competitive with local and global companies. Some prime companies contributing to the market's growth are Daikin Industries Ltd, Carrier Corporation, Systemair AB, Trane Technologies plc, Flakt Woods Group, Trox GmbH, Lennox International, Inc, Munters AB, Johnson Controls International plc, Blue Star Limited, others.

The major companies are adopting several growth strategies such as acquisitions, product launches, and collaborations, contributing to the global growth of the air handling units market.

• In May 2021, Trane Technologies plc opened a new office in Las Vegas, Nevada. Energy management and HVAC systems, services, and aftermarket parts will collaborate with local engineers, contractors, commercial building owners, and facility directors.

Daikin Industries, Ltd

Overview: Daikin Industries, Ltd., based in Osaka, Japan, is an international air conditioning manufacturer. Japan, China, Australia, the U.S., India, Southeast Asia, Europe, the Middle East, Latin America, and Africa are the countries it operates.

Daikin invented variable refrigerant flow (VRF) air conditioners. Daikin rebranded the systems as "VRV" after failing to trademark "VRF" (variable refrigerant volume). Daikin is a growing company in the split system air conditioning industry, developing the first split and multi-split systems.

Product Portfolio: The company has a product portfolio of air handling units that includes:

Modular L-ALB-RB: The product offers various features such as a counter flow plate heat exchanger of superior quality, recovering up to 93% of thermal energy. When a compact unit is required, the best option is only 280mm high and up to 500m3/h. The optional CO2 sensor can avoid energy losses from over-ventilation while enhancing indoor air quality. Pre-filters ranging from coarse 55% (G4) to ePM1 50 percent (F7), as well as second filtering, step up to ePM1 80% (F9), are available for the most outstanding indoor air quality.

Key Development

• In April 2020, Daikin Industries, Ltd. announced that Locix, Inc., a Silicon Valley-based company, had underwritten roughly 2 million USD for a capital raise through third-party allocation. By employing Locix's highly accurate local positioning technology, Locix LPS, Daikin Industries, Ltd. hoped to cut labor hours at installation sites.